Corvel Corp 10-Q for FY2027 Q1

Corvel Corp (CRVL)

10-Q 2026-08-06 For: 2026-06-30

Added on August 06, 2026

About this 10-Q

Corvel Corp filed this 10-Q on August 6, 2026, covering the quarter ended June 30, 2026 (FY2027 Q1).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $259.93M; up 10.7% from $234.71M a year earlier
Net income: $32.23M; up 18.3% from net income of $27.24M a year earlier
Diluted EPS: $0.63; up 21.2% from $0.52 a year earlier

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5128 Apache Plume Road, Suite 400
Fort Worth, TX		76109
(Address of principal executive offices)		(Zip Code)


Large accelerated filer	☑	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐


		Page

PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements	3

	Consolidated Balance Sheets – June 30, 2026 (unaudited) and March 31, 2026	3
	Consolidated Income Statements (unaudited) – Three months ended June 30, 2026 and 2025	4
	Consolidated Statements of Stockholders’ Equity (unaudited) – Three months ended June 30, 2026 and 2025	5
	Consolidated Statements of Cash Flows (unaudited) – Three months ended June 30, 2026 and 2025	6
	Notes to Consolidated Financial Statements	7

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	17

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23

Item 4.	Controls and Procedures	23

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	24

Item 1A.	Risk Factors	24

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 3.	Defaults Upon Senior Securities	34

Item 4.	Mine Safety Disclosures	34

Item 5.	Other Information	34

Item 6.	Exhibits	35

	Signatures	36


	June 30, 2026			March 31, 2026
	(Unaudited)
Assets
Current Assets
Cash and cash equivalents	$	255,883,000		$	233,072,000
Customer deposits		127,050,000			115,706,000
Accounts receivable, net		110,997,000			101,313,000
Prepaid taxes and expenses		10,851,000			12,206,000
Total current assets		504,781,000			462,297,000
Property and equipment, net		121,764,000			117,906,000
Goodwill		36,814,000			36,814,000
Other intangibles, net		219,000			263,000
Right-of-use asset, net		20,723,000			21,164,000
Deferred tax asset, net		4,264,000			3,924,000
Other assets		1,170,000			618,000
TOTAL ASSETS	$	689,735,000		$	642,986,000
Liabilities and Stockholders' Equity
Current Liabilities
Accounts and taxes payable	$	30,086,000		$	24,550,000
Accrued liabilities		229,970,000			203,518,000
Total current liabilities		260,056,000			228,068,000
Long-term lease liabilities		20,787,000			20,687,000
Total liabilities		280,843,000			248,755,000
Commitments and contingencies
Stockholders' Equity
Common stock, $0.0001 par value: 360,000,000 shares authorized at June 30, 2026 and March 31, 2026; 166,232,817 shares issued (50,596,284 shares outstanding, net of Treasury shares) and 166,168,732 shares issued (50,909,297 shares outstanding, net of Treasury shares) at June 30, 2026 and March 31, 2026, respectively		5,000			5,000
Paid-in capital		272,917,000			268,513,000
Treasury stock (115,636,533 shares at June 30, 2026 and 115,259,435 shares at March 31, 2026)		(909,684,000	)		(887,716,000	)
Retained earnings		1,045,654,000			1,013,429,000
Total stockholders' equity		408,892,000			394,231,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	689,735,000		$	642,986,000


	Three Months Ended
	June 30, 2026		June 30, 2025
REVENUES	$	259,925,000	$	234,711,000
Cost of revenues		192,131,000		177,950,000
Gross profit		67,794,000		56,761,000
General and administrative expenses		24,453,000		21,478,000
Income before income tax provision		43,341,000		35,283,000
Income tax provision		11,116,000		8,048,000
NET INCOME	$	32,225,000	$	27,235,000
Net income per common and common equivalent share
Basic	$	0.63	$	0.53
Diluted	$	0.63	$	0.52
Weighted average common and common equivalent shares
Basic		50,804,000		51,352,000
Diluted		50,928,000		51,912,000


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended June 30, 2026
	Common Shares		Stock Amount		Paid-in- Capital		Treasury Shares			Treasury Stock			Retained Earnings		Total Stockholders' Equity
Balance – March 31, 2026		166,168,732	$	5,000	$	268,513,000		(115,259,435	)	$	(887,716,000	)	$	1,013,429,000	$	394,231,000
Stock issued under stock option plan, net of shares repurchased		50,973		—		1,694,000		—			—			—		1,694,000
Stock-based compensation expense		—		—		1,360,000		—			—			—		1,360,000
Stock issuance for asset acquisition		13,112		—		1,350,000		—			—			—		1,350,000
Purchase of treasury stock		—		—		—		(377,098	)		(21,968,000	)		—		(21,968,000	)
Net income		—		—		—		—			—			32,225,000		32,225,000
Balance – June 30, 2026		166,232,817	$	5,000	$	272,917,000		(115,636,533	)	$	(909,684,000	)	$	1,045,654,000	$	408,892,000

	Three Months Ended June 30, 2025
	Common Shares		Stock Amount		Paid-in- Capital		Treasury Shares			Treasury Stock			Retained Earnings		Total Stockholders' Equity
Balance – March 31, 2025		165,836,235	$	5,000	$	250,407,000		(114,476,691	)	$	(831,510,000	)	$	903,085,000	$	321,987,000
Stock issued under stock option plan, net of shares repurchased		52,924		—		1,510,000		—			—			—		1,510,000
Stock-based compensation expense		—		—		1,417,000		—			—			—		1,417,000
Purchase of treasury stock		—		—		—		(87,105	)		(9,617,000	)		—		(9,617,000	)
Net income		—		—		—		—			—			27,235,000		27,235,000
Balance – June 30, 2025		165,889,159	$	5,000	$	253,334,000		(114,563,796	)	$	(841,127,000	)	$	930,320,000	$	342,532,000


	June 30, 2026			March 31, 2026
Billed receivables	$	76,446,000		$	67,435,000
Allowance for expected credit losses		(4,252,000	)		(3,969,000	)
Unbilled receivables		38,803,000			37,847,000
Accounts receivable, net	$	110,997,000		$	101,313,000


	Three Months Ended
	June 30, 2026
Beginning balance at April 1, 2026	$	32,235,000
Additions		21,374,000
Revenue recognized from beginning of period		(10,050,000	)
Revenue recognized from additions		(10,604,000	)
Ending balance at June 30, 2026	$	32,955,000


		Three Months Ended
		June 30, 2025
Risk-free interest rate		4.07%
Expected volatility		31%
Expected dividend yield		0.00%
Expected weighted average life of option in years		4.0 years


Range of Exercise Price	Outstanding Options – Number of Outstanding Options		Outstanding Options – Weighted Average Remaining Contractual Life		Outstanding Options – Weighted Average Exercise Price		Exercisable Options – Number of Exercisable Options		Exercisable Options – Weighted Average Exercise Price
$14.44 to $52.00		355,007		1.92	$	40.77		347,582	$	40.53
$52.01 to $54.54		287,911		4.25		53.40		66,074		54.25
$54.55 to $75.36		335,959		2.42		69.10		186,379		66.83
$75.37 to $110.18		156,954		4.27		103.02		51,917		101.67
Total		1,135,831		2.98	$	60.95		651,952	$	54.31


	Number of Options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value as of June 30, 2026
Options outstanding at April 1, 2026		1,196,283		$	59.83
Granted		—			—
Exercised		(55,079	)		35.12
Cancelled – forfeited		(3,157	)		70.91
Cancelled – expired		(2,216	)		81.34
Ending outstanding		1,135,831		$	60.95		2.98	$	10,346,703
Ending vested and expected to vest		1,108,496		$	60.42		2.96	$	10,346,703
Ending exercisable at June 30, 2026		651,952		$	54.31		2.05	$	8,189,634


	June 30, 2026		March 31, 2026
Accounts payable	$	20,287,000	$	24,323,000
Income taxes payable and uncertain tax positions		9,799,000		227,000
Total accounts and taxes payable	$	30,086,000	$	24,550,000


	June 30, 2026		March 31, 2026
Payroll, payroll taxes and employee benefits	$	45,744,000	$	31,324,000
Customer deposits		127,050,000		115,706,000
Accrued professional service fees		10,230,000		9,804,000
Self-insurance accruals		3,765,000		3,569,000
Deferred revenue		32,955,000		32,235,000
Operating lease liabilities		7,607,000		7,420,000
Other		2,619,000		3,460,000
Total accrued liabilities	$	229,970,000	$	203,518,000



2027	$	6,684,000
2028		8,500,000
2029		6,245,000
2030		4,272,000
2031		2,768,000
Thereafter		3,784,000
Total lease payments		32,253,000
Less interest		(3,859,000	)
Total lease liabilities	$	28,394,000


	Three Months Ended
	June 30, 2026			June 30, 2025
Patient management services		61.3	%		62.5	%
Network solutions services		38.7	%		37.5	%
		100.0	%		100.0	%


(1)	Includes other operating costs (such as marketing and maintenance expenses), net gain (loss) on asset sales and disposals and other costs.


					Total Number of		Maximum Number
					Shares Purchased		of Shares Remaining
					as Part of Publicly		Available to
	Total Number of		Average Price Paid		Announced		be Purchased
Period	Shares Purchased		Per Share		Program		Under the Program
April 1 to April 30, 2026		150,902	$	55.66		150,902		1,589,663
May 1 to May 31, 2026		118,767	$	58.51		118,767		1,470,896
June 1 to June 30, 2026		107,429	$	59.89		107,429		1,363,467
Total		377,098	$	57.77		377,098		1,363,467


	June 30, 2026		June 30, 2025
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,178,000	$	2,510,000
Operating lease liabilities arising from obtaining ROU assets	$	42,862,000	$	47,112,000
Finance lease liabilities arising from obtaining ROU assets	$	—	$	358,000
Additions to ROU assets resulting from additions to operating lease liabilities	$	3,442,000	$	1,296,000


	Three Months Ended									Percentage
	June 30, 2026			June 30, 2025			Change			Change
Revenue	$	259,925,000		$	234,711,000		$	25,214,000			10.7	%
Cost of revenues		192,131,000			177,950,000			14,181,000			8.0	%
Gross profit		67,794,000			56,761,000			11,033,000			19.4	%
Gross profit as percentage of revenue		26.1	%		24.2	%
General and administrative expenses		24,453,000			21,478,000			2,975,000			13.9	%
General and administrative as percentage of revenue		9.4	%		9.2	%
Income before income tax provision		43,341,000			35,283,000			8,058,000			22.8	%
Income before income tax provision as percentage of revenue		16.7	%		15.0	%
Income tax provision		11,116,000			8,048,000			3,068,000			38.1	%
Net income	$	32,225,000		$	27,235,000		$	4,990,000			18.3	%
Weighted average common and common equivalent shares
Basic		50,804,000			51,352,000			(548,000	)		(1.1	%)
Diluted		50,928,000			51,912,000			(984,000	)		(1.9	%)
Net income per common and common equivalent shares
Basic	$	0.63		$	0.53		$	0.10			18.9	%
Diluted	$	0.63		$	0.52		$	0.11			21.2	%


31.1		Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a) Promulgated under the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a) Promulgated under the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*		Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

32.2*		Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

101.INS		Inline XBRL Instance Document.

101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbases Document.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*		The certifications attached as Exhibit 32.1 and Exhibit 32.2 accompany this Quarterly Report pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the registrant for purposes of Section 18 of the Exchange Act and are not to be incorporated by reference into any of the registrant’s filings under the Securities Act or the Exchange Act, irrespective of any general incorporation language contained in any such filing.


	CORVEL CORPORATION

Dated: August 6, 2026	By:	/s/ Sarah A. Scott
	Sarah A. Scott Chief Executive Officer and President (Principal Executive Officer)

Dated: August 6, 2026	By:	/s/ Brian S. Nichols
	Brian S. Nichols
	Chief Financial Officer (Principal Financial Officer)